How to Configure Which Price to Fetch for Items? (Last Used Price vs Inventory Configured Price)

Every business follows pricing differently.

For some businesses, item prices change frequently due to market rates, negotiations, customer-specific pricing, or vendor-specific deals.

For others, item prices mostly stay fixed, with only a few exceptions.

Refrens lets you configure how item prices should be picked in two cases:

When adding items to new documents
When converting one document into another

This helps you decide whether the system should use the recently used price or the standard price configured in inventory.

Where to configure item pricing?

Go to: Business Settings > Inventory Options > Configure prices for selling and purchasing items

Here, you can choose how prices should be picked for:

Adding items to new documents
Converting similar documents
Converting between sales and purchase documents

1. Price Configuration While Adding Items to New Documents

This setting controls which price should be fetched when you add an item while creating a new invoice, quotation, purchase, expense, or similar document.

You can choose between:

Last Used Price

The system fetches the price used in the most recent transaction for that item.

This is useful when your item prices change often and you want the latest used price to continue.

Inventory Configured Price

The system fetches the selling or buying price configured in the item master.

This is useful when you want to follow standard item prices.

Example: Adding an item to a new invoice

Let’s say you have an inventory item called Bed.

Its configured selling price in inventory is: ₹12,000

But in the last invoice, you sold the same item for: ₹11,000

Now, when you create a new invoice and select this item:

If you have selected “Last Used Price” in pricing configuration settings:

As you see, even though the default selling price was “12000”, the system has fetched the last used price: “11000”.

If you have selected “Inventory Configured Price” in pricing configuration settings:

As you see, in this case, the system has fetched the item price from the default selling price added to the inventory (i.e.”12000”); even though my last selling price was “11000”.

The same logic applies to purchase prices while creating purchase or expense documents.

2. Price Configuration During Document Conversion

Refrens also lets you control how item prices should behave when converting one document into another.

For example:

Quotation → Invoice
Sales Order → Invoice
Purchase Order → Purchase Invoice
Sales Order → Purchase Order
Purchase Order → Invoice

This is useful because the right price depends on the type of conversion.

Sometimes, you may want to continue the price from the previous document.

Sometimes, you may want the system to pick the correct selling or buying price from inventory.

A simple example

Let’s say you deal in Office Chairs.

Item	Selling Price	Buying Price
Office Chair	₹1,000	₹700

Now, while converting documents, Refrens can either use:

Last Used Price: The price from the original document being converted.

Inventory Configured Price:The selling or buying price configured in inventory, based on the converted document type.

Recommended configuration for document conversion

Conversion Type	Example	Recommended Price Setting	Why
Sales → Sales	Quotation → Invoice	Last Used Price	The price quoted to the customer should continue in the invoice.
Purchase → Purchase	Purchase Order → Purchase Invoice	Last Used Price	The price agreed with the vendor should continue in the purchase invoice.
Sales → Purchase	Sales Order → Purchase Order	Inventory Configured Price	The purchase order should use the buying price, not the customer selling price.
Purchase → Sales	Purchase Order → Invoice	Inventory Configured Price	The invoice should use the selling price, not the vendor buying price.

Example 1: Sales Order to Purchase Order

Suppose you created a Sales Order for an Office Chair at:₹1,000

Now, you convert this Sales Order into a Purchase Order.

If the system uses Last Used Price, the Purchase Order may carry ₹1,000 from the Sales Order.

But that is the selling price.

If you select Inventory Configured Price, the Purchase Order will fetch the buying price from inventory: ₹700

This keeps your purchase document accurate.

Example 2: Quotation to Invoice

Suppose you created a Quotation for an Office Chair at:₹1,000

Now, you convert that Quotation into an Invoice.

In this case, it is better to use Last Used Price, because the price already quoted to the customer should continue in the invoice.

So, the invoice will also show: ₹1,000

Simple rule to remember

1) Document Connversion in Same flow (Sales **→ **Sales OR Purchase → Purchase) = continue the previous document price

Examples:

Quotation → Invoice
Sales Order → Invoice
Purchase Order → Purchase Invoice

Use Last Used Price.

2) Document Conversion in Sales ↔ Purchase flow = pick the correct inventory price

Examples:

Sales Order → Purchase Order
Purchase Order → Invoice

Use Inventory Configured Price.

You only need to configure these settings once. Refrens will automatically apply your selected pricing logic while adding items or converting documents. You can change these settings anytime in the future.

That’s it!

If you have any questions, feel free to reach out to us at care@refrens.com OR drop a message on chat support for quick assistance!

Updated on: 07/05/2026

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